The announcement that £31.3 billion more was to be given to the banks means more cuts in jobs and public services for us. It also, points to the weakness of the banking system once the super investment banking profits, made from a huge rally in financial assets since March of this year, have been stripped out.

This was undermined by the fact that the Royal Bank of Scotland (RBS) has agreed to enter an insurance scheme where we will guarantee up to £282 billion of losses on its “toxic assets” – anything from derivatives to personal loans.

£25.6 billion was given to RBS with the other £5.7 billion going to Lloyds TSB/HBOS. Lloyds hopes to raise another £21 billion from it’s’ shareholders – read our pension funds here. But this is highly unlikely as Lloyds is haemorrhaging money from the takeover of HBOS and its speculative loan business. Lloyds has no investment banking business of note to rescue it. It is almost wholly dependent on the UK economy and that as we have seen with last week’s release of gross domestic data is in its longest and deepest slump since the great depression of the 1930s.

Shares in Lloyds and RBS fell by over 10% after the announcement was full digested by the market. Both banks need the funds (capital) to cover future likely losses. The outcome is that Lloyds will have to come cap in hand to us via the government for more money to shore up their capital.

As part of the bail out the government announced the selling off of parts of both banks. Buyers will again be difficult to find as the outlook for high street banking looks bleak given the depth of the UK slump. The sell off was in part an attempt, under the cover of meeting European monopolies legislation, to hive off the non-toxic parts of the banks and leave us saddled with the loss making parts. Hidden away was a modernisation programme which was just further mass redundancies with RBS announcing 3,700 people will loose their jobs by May 2010 from their high street branches.

The global economic crisis and UK slump will lead to further losses and bailouts and more cuts for us.

The only answer is for all the banks to be taken under full ownership and control, and to socialise their loans into rents and cancel all derivatives contracts.

The announcement that £31.3 billion more was to be given to the banks means more cuts in jobs and public services for us. It also, points to the weakness of the banking system once the super investment banking profits, made from a huge rally in financial assets since March of this year, have been stripped out.

This was undermined by the fact that the Royal Bank of Scotland (RBS) has agreed to enter an insurance scheme where we will guarantee up to £282 billion of losses on its “toxic assets” – anything from derivatives to personal loans.

£25.6 billion was given to RBS with the other £5.7 billion going to Lloyds TSB/HBOS. Lloyds hopes to raise another £21 billion from it’s’ shareholders – read our pension funds here. But this is highly unlikely as Lloyds is haemorrhaging money from the takeover of HBOS and its speculative loan business. Lloyds has no investment banking business of note to rescue it. It is almost wholly dependent on the UK economy and that as we have seen with last week’s release of gross domestic data is in its longest and deepest slump since the great depression of the 1930s.

Shares in Lloyds and RBS fell by over 10% after the announcement was full digested by the market. Both banks need the funds (capital) to cover future likely losses. The outcome is that Lloyds will have to come cap in hand to us via the government for more money to shore up their capital.

As part of the bail out the government announced the selling off of parts of both banks. Buyers will again be difficult to find as the outlook for high street banking looks bleak given the depth of the UK slump. The sell off was in part an attempt, under the cover of meeting European monopolies legislation, to hive off the non-toxic parts of the banks and leave us saddled with the loss making parts. Hidden away was a modernisation programme which was just further mass redundancies with RBS announcing 3,700 people will loose their jobs by May 2010 from their high street branches.

The global economic crisis and UK slump will lead to further losses and bailouts and more cuts for us.

The only answer is for all the banks to be taken under full ownership and control, and to socialise their loans into rents and cancel all derivatives contracts.

he announcement that £31.3 billion more was to be given to the banks means more cuts in jobs and public services for us. It also, points to the weakness of the banking system once the super investment banking profits, made from a huge rally in financial assets since March of this year, have been stripped out.

This was undermined by the fact that the Royal Bank of Scotland (RBS) has agreed to enter an insurance scheme where we will guarantee up to £282 billion of losses on its “toxic assets” – anything from derivatives to personal loans.

£25.6 billion was given to RBS with the other £5.7 billion going to Lloyds TSB/HBOS. Lloyds hopes to raise another £21 billion from it’s’ shareholders – read our pension funds here. But this is highly unlikely as Lloyds is haemorrhaging money from the takeover of HBOS and its speculative loan business. Lloyds has no investment banking business of note to rescue it. It is almost wholly dependent on the UK economy and that as we have seen with last week’s release of gross domestic data is in its longest and deepest slump since the great depression of the 1930s.

Shares in Lloyds and RBS fell by over 10% after the announcement was full digested by the market. Both banks need the funds (capital) to cover future likely losses. The outcome is that Lloyds will have to come cap in hand to us via the government for more money to shore up their capital.

As part of the bail out the government announced the selling off of parts of both banks. Buyers will again be difficult to find as the outlook for high street banking looks bleak given the depth of the UK slump. The sell off was in part an attempt, under the cover of meeting European monopolies legislation, to hive off the non-toxic parts of the banks and leave us saddled with the loss making parts. Hidden away was a modernisation programme which was just further mass redundancies with RBS announcing 3,700 people will loose their jobs by May 2010 from their high street branches.

The global economic crisis and UK slump will lead to further losses and bailouts and more cuts for us.

The only answer is for all the banks to be taken under full ownership and control, and to socialise their loans into rents and cancel all derivatives contracts.